Marqeta Study: COVID-Based Digital Payment Adoption Likely to Stay for U.S. Consumers

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OAKLAND, Calif.–(BUSINESS WIRE)–The pandemic has caused a sea change in consumer preferences for how consumers want to pay, bank and shop, which two years later has become commonplace and second nature, according to a new investigation of Marqueta (NASDAQ: MQ), the modern global card issuance platform. From the company State of the movement of consumer money in 2022 The report released today – surveying 4,000 consumers across three continents, including 2,000 in the US – shows the growing prevalence of mobile wallets, on-demand delivery and cryptocurrency in shopping preferences, while highlighting the continued steep decline in the use of cash and in-person banking.

At Marqueta 2022 Consumer money movement status report marks the third time the company has surveyed US consumers about their shopping preferences. The survey found that the number of US consumers who reported using a mobile wallet in the past 12 months increased from 64% at the end of 2020 to 71% in 2022. This 11% increase from 2020 to 2022, following a 64% increase in adoption seen in Marqeta’s survey from 2019 to 2020, demonstrates that the post-pandemic increase in mobile wallet usage is becoming more and more material and continues to grow. US consumers were finding a newfound confidence in their mobile wallets and cited the ubiquity of merchant adoption as a key driver: 78% of US consumers surveyed said they could make purchases on their mobile wallet wherever they wanted to, with 56% saying they felt confident enough with contactless payments to leave their wallet at home and just pick up their phone.

“As digital payment usage has exploded during the pandemic, one of the most common questions Marqeta was asked was whether this was an enduring phenomenon or a moment in time,” said Vidya Peters, chief operating officer at Marqueta. “What our report suggests is that new consumer preferences have become entrenched over the past two years, with slow new adoption giving way to sweeping changes in payments. The cost to any business falling behind customer experience expectation curve can be high.”

As banking has become increasingly digital over the past decade, Marqeta’s report shows that the post-pandemic explosion of digital options and preferences has increasingly relegated physical banking experiences to the old world. Consumers surveyed by Marqeta globally were three times more likely to say they regularly use their bank’s mobile app (60%) than to regularly visit a bank’s physical branch (19%). More than one in three consumers globally (36%) surveyed said it would have no impact on them if all physical bank branches were to close tomorrow. Almost one in two people surveyed globally (47%) said they rarely or never use an ATM, while less than half (46%) said they use cash liquid once a week.

Beyond the point of sale, consumer preferences are changing rapidly as people adapt to a post-pandemic normality that mixes old and new shopping behaviors in unique ways: 89% of consumers surveyed around the world said they had started shopping in person again, while 57% of consumers surveyed still said they felt like COVID-19 had changed their shopping behaviors forever. Beyond that, American consumers have shown widespread interest in a wide range of new delivery, payment, and cryptocurrency options:

  • More than a third (38%) of US consumers surveyed said they own a cryptocurrency, with 93% of those who do saying they own it as an asset.

  • A large majority (82%) of consumers surveyed globally said they would be interested if their cryptocurrency exchange offered them a debit card where they could spend cryptocurrency like fiat currency.

  • Nearly half (49%) of US consumers surveyed said they used peer-to-peer payment apps more than a year ago.

  • On-demand food delivery has cemented its place in our daily lives: In 2022, 75% of US consumers surveyed said they use on-demand food delivery apps, up from 65% in 2020.

“Consumer confidence in new payment methods is creating its own cycle of change, making people more comfortable and open to new innovations, impacting every element of how they want to pay, bank and shop. their purchases,” Peters said. “Companies creating new payment tools must be as forward-thinking as today’s consumers to meet them where they are in the market, thinking outside the box to create new experiences that can surprise and delight, and create lasting relationships with customers.”

Download the full report here: marqeta.com/resources/resource/2022-state-of-consumer-money-movement/

About Research

The survey was conducted on behalf of Marqeta by Propeller Insights, from February 22 to March 1, 2022. Marqeta surveyed 4,076 consumers (2,011 in the US, 1,029 in Australia, 1,036 in the UK) aged from 18 to 65 years old.

About Marketa (NASDAQ: MQ)

Marqeta’s modern card issuance platform enables its customers to create personalized and innovative payment cards. Marqeta’s modern architecture empowers its customers to create more configurable and flexible payment experiences, accelerating time to market and democratizing access to card issuance technology. Marqeta’s open APIs provide instant access to a highly scalable, cloud-based payment infrastructure that allows customers to launch and manage their own card programs, issue cards, and authorize and settle card transactions. payment. Marqeta is headquartered in Oakland, California, and is certified to operate in 39 countries around the world. For more information, visit www.marqeta.com, Twitter and LinkedIn.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied by this press release include, but are not limit, quotes and statements relating to changing consumer preferences; increasing consumer adoption of certain digital payment methods, products and solutions; and which payment, banking and financial services products and solutions can be successful. Actual results may differ materially from the expectations contained in such statements due to risks and uncertainties, including, but not limited to, the following: the uncertainty and unpredictability of consumer preferences regarding digital payments and banking preferences; the effect and uncertainties related to the global COVID-19 pandemic on the U.S. and global economies and demand for Marqeta’s services and products; the uncertainties and direct and indirect effects of the significant military action against Ukraine launched by Russia, including threats of attacks against US financial institutions in retaliation against financial institutions for sanctions imposed against Russia; the risk that Marqeta may not be able to attract and further develop its customer base; the risk that consumers may not perceive the benefits of Marqeta’s products and services, including digital payment and banking products and services; the risk that Marqeta’s products and services may not perform as intended, including digital payment and banking products and services; the risk that Marqeta’s products and solutions will not achieve expected market acceptance, including digital payment and banking products and services; and the risk that competition will reduce expected demand for Marqeta’s products and services, including banking and digital payment products and services. Detailed information about these risks and other factors that could affect Marqeta’s business, financial condition and results of operations are included in “Risk Factors” disclosed in Marqeta’s Quarterly Report on Form 10-Q. for the quarterly period ended March 31, 2022, as such risk factors may be updated from time to time in Marqeta’s periodic filings with the SEC, available at www.sec.gov and Marqueta’s website at http://investors.marqeta.com. The forward-looking statements contained in this press release are based on information available to Marqeta as of the date hereof. Marqeta disclaims any obligation to update forward-looking statements, except as required by law..

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